A seven-day rally on the equity
Indian markets faded on Thursday, as the larger peers ended their trading
session in red terrain, tracking weak global markets. The start of the day was
weak, affected by the US think-tank National Bureau of Economic Research's
(NBER) report that the November 2016 demonetisation impacted economic activity
in the country in the immediate aftermath, affecting the Gross Domestic Product
(GDP) numbers for that fiscal, while the measure's impact had dissipated by the
summer of the following year. Domestic sentiments also got hit with the World
Bank's latest report stating that India lost a staggering $86.1 billion,
equivalent to over 4% of its GDP, owing to distortions in the power sector in
2016. It added that although India has achieved 100% village electrification
earlier this year, 178 million Indians still remain unconnected to the grid as
per figures for 2017. Some concerns also came after Crisil expressed concerns
on an over 5% dip in sowing for winter crops, which account for the bulk 40% of
the nation's annual agricultural output, amid reports of rising rural distress.
Crisil also warned that unless the sowing improves from now on, there will be
adverse impact on various aspects, including rural consumption. The trade
remained lackluster throughout the day, on the back of continuous selling done
by the traders. The street was worried with the government think-tank NITI
Aayog's statement that lack of financial literacy, high cost of banking
services and excessive regulatory requirements are the key constraints in the
financial inclusion goal for India. Adding some concerns, markets regulator
Sebi banned Kolkata-based stock broker Guiness Securities (GSL) and 35 entities
from securities market till further directions in a case related to
non-settlement of client funds and misappropriation of securities. These 35
entities also include GSL's present and former directors. However, traders
shrugged off Finance Minister Arun Jaitley's statement that it will be sound
policy measures, which will help alleviate millions from poverty and fulfill
the aspirations of the electorate. He said that sound policy will always put
economy on track, bringing people out of poverty and give them better quality
of life. Finally, the BSE Sensex lost 52.66 points or 0.14% to 36,431.67, while
the CNX Nifty was down by 15.60 points or 0.14% to 10,951.70.
The US markets ended lower on
Thursday, with the Nasdaq Composite Index teetering on the edge of a bear
market, as worries mounted about a possible government shutdown and the Federal
Reserve's latest guidance on interest rates. President Donald Trump told House
Republicans he is unwilling to sign a short-term spending bill approved by the
Senate due to a lack of funding for his controversial border wall. The Senate bill
passed by a voice vote Wednesday night would fund key government agencies
through February 8, but pushes a debate over funding for the border wall into
the next Congress. Further, renewed concerns about US-China trade talks also
weighed on the markets after the Justice Department announced the criminal
indictment of two computer hackers associated with the Chinese government. The
unsealed indictment charges the two Chinese nationals with conspiracy to commit
computer intrusions, conspiracy to commit wire fraud, and aggravated identity
theft. On the economic front, after reporting a notable decrease in first-time
claims for US unemployment benefits in the previous week, the Labor Department
released a report showing initial jobless claims rebounded in the week ended
December 15. The report said initial jobless claims rose to 214,000, an
increase of 8,000 from the previous week's unrevised level of 206,000. Street
had expected jobless claims to climb to 216,000. The slightly
smaller-than-expected rebound came after jobless claims fell to their lowest
level in nearly three months in the previous week. Meanwhile, a report released
by the Conference Board showed a modest increase by leading US economic
indicators in the month of November. The Conference Board said its leading
economic index rose by 0.2 percent in November after falling by a revised 0.3
percent in October. Dow Jones Industrial Average dropped 464.06 points or 1.99
percent to 22859.60, Nasdaq plunged 108.42 points or 1.63 percent to 6528.41
and S&P 500 was down by 39.54 points or 1.58 percent to 2467.42.
Crude oil futures ended lower
with cut of over two percent on Thursday, sending US benchmark prices to their
lowest finish in 17 months after the Federal Reserve hiked US interest rates,
and as fir issues returned to haunt the market. Prices for the US benchmark
logged their lowest finish since July 21, 2017. The Organization of the
Petroleum Exporting Countries is reportedly planning to release a table
detailing voluntary supply cut quotas among its members and allies as its tries
put a halt to one of the biggest oil price falls in years. Benchmark crude oil
futures for February plunged $2.29 or 4.8 percent to settle $45.88 a barrel on
the New York Mercantile Exchange. February Brent crude dropped 2.89 or 5.1
percent to settle at $54.35 a barrel on London's Intercontinental Exchange.
Extending
gains for the fourth straight session, Indian rupee ended considerably higher
against dollar on Thursday, on persistent selling of the American currency by
banks and exporters. Sharp recovery in domestic equity markets coupled with
softening crude oil prices aided to the rupee's rebound. Traders took a note of
Finance Minister Arun Jaitley's statement that it will be sound policy
measures, which will help alleviate millions from poverty and fulfill the
aspirations of the electorate. He said that sound policy will always put
economy on track, bringing people out of poverty and give them better quality
of life. On the global front, dollar fell to a one-month low on Thursday on
growing concerns that US policymakers may be raising interest rates just as the
world's biggest economy faces a slowdown. Finally, the rupee ended at 69.70, 69
paise stronger from its previous close of 70.39 on Wednesday.
The FIIs as per Thursday's data
were net buyers in equity and debt segments both. In equity segment, the gross
buying was of Rs 5999.51 crore against gross selling of Rs 4983.91 crore, while
in the debt segment, the gross purchase was of Rs 1933.06 crore with gross
sales of Rs 722.58 crore. Besides, in the hybrid segment, the gross selling was
of Rs 2.20 crore against no buying.
The US markets settled in red
territory on Thursday as worries mounted about a possible government shutdown
and the Federal Reserve's latest guidance on interest rates. Asian markets were
trading lower on Friday following the overnight market rout on Wall Street. The
US Department of Justice also charged two Chinese nationals on Thursday for
participating in a global hacking campaign. Indian markets failed to hold
seven-day gaining momentum and ended tad lower on Thursday amid weakness in
Asian peers, after the US central bank dashed investor hopes for a more dovish
policy outlook. Today, the markets are likely to make pessimistic start
following weak global cues as the markets were affected by the US top bank's
plan to continue its balance sheet reduction and the threat of a partial
government shutdown. There will be some cautiousness with the central bank's
statement that the total external commercial borrowings (ECB) will now be
rule-based and will be capped at 6.5% of the gross domestic product. The limit
now works out to be about $160 billion for the current fiscal year, against the
actual outstanding of $126.29 billion as on September 30. The central bank
already has a rule-based exposure for foreign investors' exposure in bonds.
Foreigners are allowed to invest up to 6% of the outstanding debt. However,
some support may come later in the day with report that the Lok Sabha passed
the Consumer Protection Bill, and the government introduced a Bill to amend the
Companies Act to further improve the ease of doing business and ensure better
compliance levels. The Consumer Protection Bill seeks to strengthen the rights
of consumers and provide a mechanism for redressing complaints regarding
defects in goods and deficiency in services. Traders may take note of a report
that the government will infuse Rs 830 billion into public sector banks in the
remaining months of 2018-19, taking capital injection into lenders to Rs 1.06
trillion in the year. Of this, it has sought Parliament's approval for Rs 410
billion through the second batch of the supplementary demand for grants. The
Budget had announced a capital infusion of Rs 650 billion. Meanwhile, the
coming Goods and Services Tax (GST) Council meeting will primarily delve into
issues that will ease the filing of returns and the refund processes for small
and mid-size businesses. Moreover, the government is taking steps for
implementing methanol economy in India and has constituted five task forces
including its production from high ash coal. There will be some buzz in the
banking sector stocks with the Reserve Bank of India's (RBI) data showing that
bank credit rose at a healthy 15.07% to Rs 92.03 trillion in the fortnight to
December 7, while deposits grew 9.66% to Rs 118.84 trillion. In the previous
fortnight ended November 23, credit has risen by 15.09% to Rs 91.32 trillion,
while deposits surged 9.43% to Rs 118.13 trillion.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE Nifty
|
10,951.70
|
10,900.32
|
10,982.82
|
BSE Sensex
|
36,431.67
|
36,264.54
|
36,537.16
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
Yes Bank
|
619.71
|
186.75
|
180.63
|
190.23
|
IOC
|
215.55
|
147.85
|
145.75
|
149.10
|
ONGC
|
212.04
|
148.60
|
147.08
|
150.43
|
SBI
|
192.22
|
294.05
|
290.92
|
299.42
|
Indiabulls Housing Finance
|
166.32
|
846.05
|
824.70
|
871.20
|
Maruti Suzuki India has cut its sales growth forecast for the current fiscal to 8 percent from an earlier projection of double digit growth.
IOC has given 2.05 lakh gas connections in Telangana under the Pradhan Mantri Ujjwala Yojana.
TCS has successfully implemented a Regional Payments Hub - powered by TCS BaNCS for Payments - for MUFG Bank, Japan's largest financial institution.
ICICI Bank has revamped its Trade Online platform to make export and import transactions flexible for Indian and overseas market.